85-066
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.
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RESOLUTION NO.
(:6;-&5
WHEREAS, on 8 July 1985, the City Council of the City of
Shorewood adopted Resolution Number 48-85 authorizing staff to work
on all necessary procedures incidental to the consruction and
installation of a Municipal Trunk Water Supply and Storage Facility
to provide water to the southeast portion of the City of Shorewood;
and
WHEREAS, the City of Shorewood has entered into an agreement with
the City of Minnetonka dated 5 August 1985 whereby the City of
Minnetonka has agreed to provide temporary water service to the
southeast portion of the City of Shorewood prior to completion of the
Shorewood Facility; and
WHEREAS, a provision of said Water Service Agreement requires the
City of Shorewood to post a letter of credit in the amount of
$50,000.00 which shall be forfeited to Minnetonka if Shorewood's
facility is not completed and ready for operation within four years
from the date of such Agreement; and
WHEREAS, the Minnetonka State Bank has agreed to provide such
letter of credit in favor of the City of Minnetonka for an annual fee
of 1% of the principal amount, to be paid by the City of Shorewood;
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of
Shorewood:
That the Mayor and City Administrator are hereby authorized to
enter into an agreement with the Minnetonka State Bank for the
provision of a letter of credit in the amount of $50,000.00 in favor
of the City of Minnetonka at an annual fee of 1% of the principal
amount, pursuant to the terms and conditions of the Water Service
Agreement dated 5 August 1985.
Dated this ____ day of August, 1985.